To move quickly on time-sensitive opportunities like "fire sales," brands should structure their budgets with a pre-approved, flexible "test budget." This eliminates the need for lengthy approval processes, allowing marketing teams to act decisively and secure high-value media placements as they arise.
Poppy structures its marketing with an 80/20 split. 80% is planned against predictable retail and cultural calendars, while a crucial 20% is reserved for opportunistic, high-risk plays that tap into emerging trends with no guaranteed ROI. This framework enables agility and viral potential.
To avoid constant battles over unproven ideas, proactively allocate 5-10% of the marketing budget to a line item officially called "Marketing Experiments." Frame it to the CFO as a necessary fund for exploring new channels before current ones tap out and for seizing unforeseen opportunities.
To get C-suite buy-in for long-term brand investment, marketers should run small, ring-fenced test campaigns. By isolating a market segment and layering brand tactics on top of demand generation, you can demonstrably prove superior growth compared to a control group, de-risking a larger investment.
By establishing a TROI target (e.g., 11 months) that the company's finance team is comfortable with, the marketing team gains autonomy to spend without a fixed cap. As long as new investments are projected to pay back within that timeframe, the budget can scale indefinitely.
Brands can purchase high-visibility, premium TV spots like college football at a discount by tapping into "fire sales" of remnant inventory. This requires an agile budget and quick communication with your media partner to capitalize on these last-minute deals.
To ensure continuous experimentation, Coastline's marketing head allocates a specific "failure budget" for high-risk initiatives. The philosophy is that most experiments won't work, but the few that do will generate enough value to cover all losses and open up crucial new marketing channels.
Contrary to its reputation, zero-based budgeting frees marketers from historical spending patterns. It forces a fundamental re-evaluation of tactics against objectives, often leading to smarter, more effective plans that may even require increased investment.
To get statistically significant feedback from a paid ad campaign, you must be willing to spend at least twice your target Customer Acquisition Cost (CAC) just on the test. Spending less provides an insufficient feedback cadence, making it impossible to know if the campaign can become efficient.
To balance execution with innovation, allocate 70% of resources to high-confidence initiatives, 20% to medium-confidence bets with significant upside, and 10% to low-confidence, "game-changing" experiments. This ensures delivery on core goals while pursuing high-growth opportunities.
Instead of traditional budget allocation, treat marketing decisions like a VC portfolio. This means structuring investments to have a limited, known potential loss (capped downside) but the possibility of exponential returns (uncapped upside), encouraging bolder, more innovative moves.